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Welcome to Savings Bonds’s MAXIMIZING YOUR SAVINGS BOND INVESTMENT WEBCAST - PowerPoint PPT Presentation

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Welcome to Savings Bonds.com’s MAXIMIZING YOUR SAVINGS BOND INVESTMENT WEBCAST. Questions can be submitted using the Q&A button at the bottom right or by email at jquinn@savingsbonds.com. Your speaker today is…. Jack Quinn Savings Bond Expert.

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Questions can be submitted using the Q&A button at the bottom right or by email at jquinn@savingsbonds.com

Your speaker today is…

Jack QuinnSavings Bond Expert

This Savings Bond Educational Experience is being brought to you by www.SavingsBonds.com

Topics we’ll cover today...

  • Savings Bond Series

  • Which Bonds to Hold, Which to Cash In

  • Best Time to Cash In YOUR Bonds

  • The Difference Between Initial and Final Maturity

  • Unpleasant Tax Surprises

Savings Bonds in Circulation

  • No Longer Available

    • Series E

    • Series H

    • Series HH

    • Baby Bonds

      • A thru K

    • Freedom Shares

      • aka Savings Notes

  • Currently Available

    • Series EE

      • aka “Patriot Bond”

    • Series I

Expert’s tip on EE and I Bonds

  • Can redeem both EE an I bonds only AFTER 12 months old

    • UNLESS your county is declared a “Federal Disaster Area”

    • Ex. Communities affected by Hurricane Katrina

  • 3-month interest penalty if the bond is redeemed during first 5 years

Paper EE Savings Bonds

  • Purchase at half of face value

    • i.e. pay $50 for a $100 bond

  • Denominations:

    • $50, $75, $100, $200, $500, $1,000, $5,000, and $10,000

  • Bond worth its face value when it reaches “initial” maturity

    • Bonds purchased May 2005 & after have two major rule changes:

      • Int. % Rate FIXED for first 20 years, with extension of 10 years

      • Guaranteed to reach face value by 20th year

  • $30,000 maximum cash-purchase in one calendar year ($60,000 face value)

Paper I Savings Bonds

  • Purchased at face value:

    • i.e pay $100 for a $100 bond

  • Denominations:

    • $50, $75, $100, $200, $500, $1,000, $5,000, and $10,000

  • $30,000 maximum cash-purchase in one calendar year($30,000 face value)

Rates as of May 1 2007EE BONDS: 3.40%I BONDS: 3.74%

EE Bond Interest Rates

For EE Savings Bonds Purchased…

  • April 1995 - Or Earlier

    • Rate before May 1995 earn interest depends on their issue date

    • Before five years old, earn interest based on fixed graduated scale, except bonds issued March 1993-April 1995 earned a fixed rate of 4%

  • May 1995 - April 1997

    • Earn interest based on market yields for U.S. Treasury securities

    • Bonds earned two savings bond rates: a short-term rate and a long-term rate

  • MAY 1997 –April 2005

    • Earn variable market based Rate based on 5-year Treasury security yields

  • May 2005 – Today

    • Fixed Rate for first 20 years

    • May Adjust for final 10 years

This Savings Bond Educational Experience is being brought to you by www.SavingsBonds.com

I Bond Interest Rates

  • Increase in value monthly - interest is paid when bond is redeemed

  • Increase in value with inflation-indexed earnings

  • Rate is combination of fixed rate and an inflation rate based on CPI-U

  • Interest compounds semiannually for 30 years


When is the best time to cash in your bonds?

How do you avoid costly mistakes with your savings bonds?

How does the average investor make dollars and sense of the Savings Bond Market?

Where can you find all the rules, values, interest rates all in one place?


Which to hold, which to cash in

  • *Expert Tips – The Three Biggest Mistakes

    • Cashing in a bond without knowing interest rates

    • Cashing in bonds based on purchase date

    • Forfeiting up to 6 months worth of interest

      • It was once reported by the Treasury Department that $150 MILLION in interest is forfeited every year by cashing in bonds at the wrong time

How to Maximize Cashing In

  • Bonds post interest as of the first of the month and remain at that value throughout the month

  • If a bond only posts interest every 6-months, be sure to hold it until the next interest posting date – or you may forfeit the prior 6 months of interest!

    • When is the interest posting date for my bond?See the Savings Bond Guru Trial at the end of this webcast

Savings Bond Maturity Dates

There are over $15,000,000,000In Savings Bonds that have reached FINAL Maturity and SHOULD HAVE been cashed in!

  • What is “Final” maturity?

  • How do you know when your specific bonds have reached “Final” Maturity?


The Difference Between Initial and Final Maturity


  • Initial Maturity

    • When a paper bond reaches it’s FACE value printed on bond

  • Final Maturity

    • When a bond STOPS earning interest

  • *Expert Tip: The IRS REQUIRES you report the interest as of the final maturity…

Currently EE and I Bonds reach Final Maturity at 30 Years


Taxation - EE and I Bonds

  • Exempt from state and local income tax

  • Financial institution where you cash in your bonds will report your interest earnings to the IRS

  • IRS Form 1099-INT goes to you and the IRS when a bond is cashed

  • *Expert Tip: Watch out for the Tax Surprise

    • When redeeming a bond, the difference of purchase price to cash in value (which can be 4 to 6 times it’s face value) is reported as interest income

Find out what you need to know…The Savings Bond Gurua service of SavingsBonds.comLet’s take a look at theSavings Bond Performance Report…

How do I get a free Savings Bond Performance Report for my bonds?

Go to http://www.SavingsBonds.com/BondGuruClick on the red button “FREE TRIAL”!

We will now take your questions about your Savings Bonds

You can submit your question either by email to jquinn@savingsbonds.com

OR by using the Question button in the lower right of your screen…

Thank you for attending

  • Miss some info? When is the next Webcast?

    • This presentation will be available on our site in a few days

    • Next Webcast will be Wednesday – June 13th @ 1PM & 4PM EST

    • We’ll be covering new topics like:

      • The difference between a Co-Owner & Beneficiary

      • Proper titling of Savings Bonds

      • How to title bonds to MINIMIZE your taxable income

      • AND MORE!

        REGISTER NOW!http://www.SavingsBonds.com/Webcasts

  • Submit your questions for the next Webcast:Jquinn@savingsbonds.com

This Savings Bond Educational Experience is being brought to you by www.SavingsBonds.com

See you at the next webcast…

Next Wednesday – June 13th @ 1PM & 4PM Eastern!

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